|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | |
MARCH 16, 2004
By Andy Reinhardt High Noon for Microsoft in Europe [Page 2 of 2] UNTESTED THEORY. The two sides could well agree to other measures. For instance, Microsoft might be allowed to leave Media Player as the primary option built into Windows but add a "wizard," a software-installation tool that guides users and would run when a customer fired up a PC for the first time. This would allow the user to select which media players to install, and whether to set one as the default. The noninstalled options could be shipped on a CD-ROM with the PC or made available via download. Microsoft might have to agree to leave the Media Player desktop icon hidden unless customers activated the software. What's odd about all this is that media players are generally available for free over the Internet. Besides, they usually install themselves automatically if a PC user clicks on a piece of online media he or she can't currently play. So, even if Microsoft stripped out the Media Player entirely, the software would likely end up being installed from the Net the first time a customer tried to play a streaming audio or video file. Microsoft has tried to assert its right to bundle whatever applications it deems appropriate -- what it calls its "right to innovate." If it is ordered to ship rival media players with Windows, its ability to add features such as Internet searching and online music downloads to subsequent editions of Windows could be threatened. Also, if it reaches a settlement, Microsoft might be saddling itself with a difficult precedent. Every time Redmond rolls out new features in its operating system, third-party providers of comparable software could lobby to have their versions included. PROTECTION AT HOME. So why is the European Commission even bothering with this? It argues that the very dominance of Media Player, which is on every PC desktop, biases content producers to create material that complies with Microsoft's standard. Then, and only then, do producers consider rolling out additional versions of audio and video offerings that can be used with rival software. If Media Player is no longer a given, the EC argues, content producers will be free to consider all options. What's more, consumers will have a greater selection of digital media from which to choose, and Microsoft's power to set standards and exert control in digital media will be reduced. It all sounds fine in theory, but the market hasn't yet had a chance to validate whether unbundling Media Player would produce more options -- or might actually reduce choice by burdening content producers and users with the task of juggling multiple formats. The issue of the server interfaces seems less ambiguous -- and Microsoft is apparently more willing to give ground on the matter. Clearer specifications, analogous to the rules that govern interconnection between Internet routers from Cisco Systems (CSCO ), Juniper Networks (JNPR ), and Nortel Networks (NT ), would level the playing field and allow companies such as Sun to compete on price and technical merits against rival offerings from Microsoft. Even this aspect of the case raises questions, however. GOING FOR IT. For instance, if the EU forces Microsoft to disclose intellectual property in Europe, will it be possible for U.S.-based companies to use that information without treading on copyright or patent laws? Clearly, a settlement would have to address this problem, but an outright ruling by the EU might leave it open to endless legal battles. It's battles such as these that Microsoft still hopes to avoid through a settlement. Yet with the finish line in sight, and after the European competition agencies' Mar. 15 vote of confidence, the EU may be emboldened to go for total victory. Then again, might pragmatism produce a last-minute compromise? The clock is ticking.
 With Jay Greene in Seattle . Reinhardt is covering the dispute for BusinessWeek in Paris Edited by Douglas Harbrecht
BW MALL
SPONSORED LINKS
Buy a link now!Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
